Read the Security Whitepapers on the Adobe site. You will probably need
crossdomain.xml files installed on the machine in the appropriate place.
There's an implicit yes in Alex's reply, so here an explicit one.
Yes you can communicate with Socket servers. Security is the main tripping point, and Alex's suggestion is the right starting point.
I understand I can connect to sockets because I can do it locally, but when I deploy the Flex app to our server: mydomain.com it has a hard time talking to the socket server on 'localhost:5000' I realize that Flex will ask for a policy file on port 843 first, but I'm unsure how to go about setting that up. We can create yet another exe that listens on port 843 for the <policy-file-request> and simply reply with the xml, but I was wondering if there was a more 'elegant' approach.
I'm no server expert, but whatever server is serving localhost:5000 should
be configurable to service localhost:843